Ilovecheese
ronib
I find Mark Carney’s endorsement of Rachael Reeves a bit disconcerting. It feels as if the Bank of England is only interested in maintaining standard orthodox banking practices and it suggests that Rachael Reeves is definitely one of their own. A safe pair of hands for the Bank. When Labour says the country needs a better growth strategy, that is acceptable to the Bank but when the Conservatives offer the same policy, the reaction is not positively received. Or have I misunderstood?
I feel the same concern about Rachel Reeves.
I have my concerns about Reeves, too, but when I looked at her speech she is talking a lot about investing in public services. That alone would provide a boost to the economy and would help the private sector because, as I keep pointing out, the public sector gets all its goods and services from the private sector and public sector employees spend their wages in the private sector.
Then there is housebuilding and investment in green energy. It all adds up to more money in the economy and more incentive for private investment.
From eonomist, Simon Wren Lewis', blog today:
The government does not invest enough, and partly as a result the private sector does not invest enough. As this excellent report from the Resolution Foundation’s Felicia Odamtten & James Smith shows, public and private sector investment are complements; the former encourages the latter. This chart from the report shows that UK public investment is consistently below the international average, and that average includes many countries that have underinvested over the last two decades like Germany and the US.
Interesting that Reeve's focus was on 'trickle down doesn't work'. Which is correct, but I'm still not sure if she still thinks that the government can't spend until increases its tax take. Because it won't increase its tax take until it does spend..
What 'same policy' have the tories offered, ronib?
www.ukpol.co.uk/rachel-reeves-2022-speech-to-labour-party-conference/